It is common to see businesses struggle with the complexities of employment law, particularly when it comes to unfair dismissal claims. These claims can be costly and time-consuming, but with the right knowledge and practices, they can be largely avoided. In this blog, I'll explain what unfair dismissal is and offer practical tips to help your business steer clear of these claims.

What is unfair dismissal?

Unfair dismissal occurs when an employee is terminated from their job in a manner that is legally unfair, unjust, or unreasonable. Under employment law, employees have the right to challenge a dismissal if they believe it was unfair. For a dismissal to be considered fair, it generally must be for a valid reason such as misconduct, poor performance, redundancy, or because the role is no longer required. Additionally, the dismissal process itself must be conducted fairly.

Who can claim unfair dismissal?

Not all employees can claim unfair dismissal. Typically, employees must have been employed for a minimum period (usually two years) before they can make a claim. However, there are exceptions, particularly if the dismissal is related to discriminatory reasons or other automatically unfair reasons, such as raising health and safety concerns.

Top tips to avoid unfair dismissal claims

1. Follow a fair procedure: always follow a fair and transparent procedure when considering dismissal. This includes providing warnings, giving the employee an opportunity to improve, and holding a fair hearing where the employee can present their side.
2. Document everything: keep detailed records of performance reviews, disciplinary actions, warnings, and any other relevant interactions with the employee. This documentation can be crucial if you need to defend a dismissal decision.
3. Conduct regular performance reviews: regular performance reviews can help identify issues early and provide employees with a clear understanding of their performance and expectations. This also gives them a chance to improve before more serious action is considered. You can do this by monthly 1-1s and annual appraisals.
4. Seek legal advice: before proceeding with a dismissal, especially in complex situations, seek advice from an employment solicitor. This can help ensure that you are compliant with the law and reduce the risk of an unfair dismissal claim.
5. Train your managers: ensure that managers and supervisors are well-trained in handling disciplinary issues and understand the importance of following fair procedures. They are often the first point of contact and play a key role in managing employee relations.
6. Use probation periods effectively: make good use of probation periods to assess an employee's suitability for the role. If issues arise during this period, it’s generally easier and less risky to terminate the employment.
7. Be consistent: apply your disciplinary and dismissal procedures consistently across the board. Inconsistencies can lead to claims of unfair treatment and discrimination.
8. Consider alternatives: before deciding on dismissal, consider if there are any alternative measures such as redeployment to a different role, additional training, or mediation. Showing that you have considered all options can help demonstrate fairness.

Unfair dismissal claims can be a significant burden for businesses, but with the right approach, they can often be avoided. By following fair procedures, documenting actions, seeking legal advice, and training your managers, you can protect your business and maintain a positive workplace environment.

If you need further guidance or have specific questions about handling dismissals, don't hesitate to get in touch with us. We can provide tailored advice to help you navigate the complexities of employment law and minimise the risk of unfair dismissal claims. Contact Sarah Naylor, head of commercial and dispute at sarah.naylor@switalskis.com or call 0800 138 0458.